Question
CafeSi Inc. plans to issue new common stock and the investment banking firm you hired has determined that the stock should be offered at
CafeSi Inc. plans to issue new common stock and the investment banking firm you hired has determined that the stock should be offered at a price of $30.00 per share and that you should anticipate paying a dividend of $8.00 in one year. You anticipate a constant growth in dividends of 3.00% per year and the investment banking firm will take 2.00% per share as flotation costs. The corporate tax rate is 20%.) What is the cost of equity for CafeSi Inc.? a) 29.49% Ob) 24.02% Oc) 23.41% d) 23.03% O e) 30.21% Of) 30.04% Og) 31.03% Oh) 22.62%
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
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